Leaving an inheritance for your children when you die is a smart decision. With the help of a lawyer, you can write a will and testament so you can make sure that your heirs will receive your estate after your death. However, the value of your estate may be reduced to a lower amount due to inheritance taxes. Here are a few ways to avoid estate tax and ensure a stable financial future for your children:
Write a Specific Will
Estate planning attorneys in Utah, for instance, always say that writing a will is the most effective way to make sure the court will distribute your estate according to your wishes. Without the specifics of a will, chances are the court will follow the intestacy rules during the estate distribution. Moreover, your assets will likely be liable for inheritance taxes.
Put Assets into a Trust
One way to protect your assets from the hefty estate tax in the future is to put them in a trust as early as now. You can specify when your children will start benefiting from the trust. Some people, for instance, state that the trust will only be available to beneficiaries if they reach the age of 18 or 21.
Leave a Part of the Estate to Charity
According to several estate planners, an estate’s allotted part for a charity won’t be liable to inheritance tax. They say if your will states that at least 10% of your total assets should go to charity, your remaining assets will only incur a lower tax rate.
By avoiding estate taxes, you can take better care of your children even after your death. But while the information above is helpful, it is still better to ask your estate planning lawyer for a strategy that is ideal for your circumstance.